Gross offering proceeds of $64,766,336 fund the $54,100,000 asset acquisition, $1,854,800 in reserves, $1,630,500 acquisition fee, $2,266,822 dealer fee, and related syndication costs.
Total Fees & Expenses
$6,800,465
% of offering
9.50%
All-equity offering — load on equity equals load on offering price.
Where the offering proceeds go
Acquisition Cost$57.97M89.5%
Offering Expenses$6.80M10.5%
Reserves$1.85M2.9%
Total fees & expenses
$6.80M
9.50% of offering
Offering expenses
$6.80M
10.50% of offering
Reserves held
$1.85M
2.86% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $1,630,500 | 2.52% | 2.52% |
| Title & Recording Costs | $130,571 | 0.20% | 0.20% |
| Reserves (Loan Proceeds) | $1,854,800 | 2.86% | 2.86% |
| Reserves (Lender Required) | $1,854,800 | 2.86% | 2.86% |
| Reserves (Lumped) | $1,854,800 | 2.86% | 2.86% |
| Reserves (Improvements) | $1,854,800 | 2.86% | 2.86% |
| Finance Expenses | $250,000 | 0.39% | 0.39% |
| Total Acquisition Cost | $57,965,871 | 89.50% | 89.50% |
| Total Acq. Cost (Reserves) | $57,965,871 | 89.50% | 89.50% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $3,885,980 | 6.00% | 6.00% |
| Dealer Fee | $2,266,822 | 3.50% | 3.50% |
| Wholesaling Fee | $10,000 | 0.02% | 0.02% |
| Carry Costs | $250,000 | 0.39% | 0.39% |
| Total Offering Expenses | $6,800,465 | 10.50% | 10.50% |
Strengths
- Full reserve capitalization of $1,854,800 at offering closing
Concerns
- Total offering expenses and front-end fees reach $6,800,465
- Dealer fee of $2,266,822 and sales commissions up to 6.0%